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SNAP CERTIFICATION MANUAL – SECTION 7000 7600 Calculation of A Budget 7610 SNAP Budget Process

7610 SNAP Budget Process SNAP Manual 06/01/05 Step 1. Gross Income Pretest. All households except persons aged 60 or older and/or individuals with disabilities households (see SNAP 1910) and categorically eligible households (see SNAP 1920) must meet the gross income pretest. Is the household exempt from the gross income pretest?  YES  NO If yes, go directly to Step II on the following page. If no, complete the pretest below: 1. Enter the household’s total gross non-excluded earned income. $

 HINT: If there is self-employment income, you must determine the monthly net self- employment income before you can apply the pretest. 2. Enter the household’s total gross non- excluded unearned income. $

3. Add line 1 and line 2. Enter total gross income here. $

4. Enter the farm loss deduction if the household is entitled to one. $

5. Subtract line 4 from line 3. Enter here. This is the countable gross income. $

6. Enter the pretest income from the issuance chart here. $

Does the household’s countable gross income exceed the pretestincome?  YES  NO If yes, the household is ineligible. Deny the application or close the case. If the household’s countable gross income is equal to or less than the pretest income, go to Step 2. Step 2. Calculate Adjusted Income 1. Enter the total gross earned income (Step I, line 1). $

2. Enter the percentage of the total gross earned income allowed as the earned income deduction. See Appendix D (Current Standards). $

3. Multiply total gross earned income by the current percentage and enter the result here. This is the earned income deduction. $

4. Subtract line 3 (earned income deduction) from line 1(total gross earned income). Enter result here. This is the net earned income. $

5. Enter total gross unearned income (Step I, line 2). $